Why Is the Long-Run Aggregate-Supply Curve Vertical

question 144

Multiple Choice

Why is the long-run aggregate-supply curve vertical?

• A) because population grows slowly
• B) because the government controls inflation
• C) because money is neutral
• D) because prices are stable

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Definitions:

Sample Mean

The average value obtained from a sample, used as an estimate of the population mean.

Population Standard Deviation

A measure of the dispersion or spread of all the data points in a population from its mean value.

Central Limit Theorem

A statistical theory stating that the distribution of sample means approximates a normal distribution as the sample size becomes larger, assuming all samples are identical in size, regardless of the population's distribution.

Discrete Distribution

A type of probability distribution where the variable can take on a countable number of distinct values.